Agreement reached on Kimberley gas hub

Traditional owners in Western Australia's Kimberley have agreed to allow the construction of a gas processing hub, near Broome.

The WA Premier Colin Barnett says the Kimberley Land Council has overwhelmingly backed a deal which will result in traditional owners receiving more than $1-billion in compensation over thirty years.

The hub will be built at James Price Point, north of Broome.

The oil and gas producer, Woodside, is one of several companies which will use the hub to process gas from the Browse Basin.

The agreement follows threats by Mr Barnett that the land would be compulsorily acquired if a negotiated agreement was not reached by today.

They have agreed to the offer put forward by the State of Western Australia, the Commonwealth and Woodside, " he said

"So that's a very important day for them, a very important day for the Kimberley and for Western Australia and indeed Australia."

Funding boost welcomed

The Kimberley Land Council says traditional owners are feeling proud and strong after negotiating the billion-dollar benefits package.

The Executive Director of the Land Council, Wayne Bergman says it is only an in-principle agreement, and there is still plenty of negotiating to take place before the deal is finalised.

"This process has been about trying to create a positive opportunity for Kimberley Aboriginal people, a positive opportunity to change the overwhelming poor social impediment on aboriginal people," he said.